The Sustainability InstituteThe Sustainability Institute

EPA Grant Termination

Grant Termination and Pending Litigation

Despite winning a landmark constitutional challenge in federal district court in May 2025 against the Environmental Protection Agency’s (EPA) unlawful freezing of our $11.4 million Community Change Grant, the Sustainability Institute received formal termination of the award on July 28, 2025. This termination immediately jeopardizes $2.7 million designated for critical health and safety repairs and weatherization for over 50 energy-insecure Union Heights households, as well as $6 million for the development of affordable housing units in Project 218.

 

We are actively challenging this termination as part of our pending litigation, which is now before the Fourth Circuit Court of Appeals with oral arguments scheduled for October 23, 2025. While we pursue every legal and political avenue to recover or reinstate the funding, including community advocacy coordinated with City leadership, we acknowledge the lengthy resolution timeline and the low likelihood of recovering the full original investment, necessitating urgent contingency planning to meet the immediate safety needs of our residents.

EPA Grant Termination & Litigation Timeline

Legal & Funding Setback Timeline


Late 2024 / Early 2025

Grant Award & Scoping

EPA grant ($11.4M) awarded. Project scope defined: $6M for affordable housing (Project 218) and $2.7M for critical home repair/weatherization on 50 existing homes.

Preparation & Data Collection

Early 2025

Multiple Grant Freezes

The EPA freezes the grant three separate times as the project was kicking off, causing significant startup delays.

Project Disruption

March 19, 2025

Federal Lawsuit Filed

Sustainability Institute files a federal lawsuit challenging the unlawful freezes on constitutional and Administrative Procedure Act (APA) grounds.

Litigation Initiated

End of April 2025

Temporary Fund Access

Full access to funds temporarily restored. SI achieves significant progress: finalized preliminary site plan, conceptual designs, and nearly 60 home inspections/energy audits.

Significant Progress

May 2025

District Court Victory (Judge Gergel)

SI wins in Federal District Court; the judge rules the government's freeze was unconstitutional and violated the separation of powers and APA.

Legal Landmark

May / June 2025

Justice Department Appeals

The Justice Dept. appeals the ruling to the 4th Circuit Court of Appeals on jurisdictional grounds.

Case Escalation

July 28, 2025

Grant Officially Terminated

EPA formally terminates the $11.4M Community Change Grant. EPA refuses to pay $75,000 in incurred costs until SI closes the grant (drops the lawsuit).

CRITICAL THREAT: $2.7M Home Repair Lost

August 19, 2025

Community Update & Activation

Planned design charrette repurposed to inform residents of termination, discuss litigation, and arm them with direct action advocacy tools (calls/letters to Senator Scott).

Community Mobilization

October 23, 2025

4th Circuit Oral Arguments

Oral arguments for the Justice Department's appeal are tentatively scheduled.

Key Legal Milestone

Ongoing / Future (Months)

Anticipated Resolution & Advocacy

Litigation resolution could take months; recovery of full funding is deemed unlikely.

Contingency Planning Required